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華爾街日報This Tri Pointe Homes Insider Reduced Their Stake By 14%
Insiders were net sellers of Tri Pointe Homes, Inc.'s (NYSE:TPH ) stock during the past year. That is, insiders sold more stock than they bought.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Tri Pointe Homes Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the CEO & Non-Independent Director, Douglas Bauer, for US$3.6m worth of shares, at about US$30.15 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$31.47. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 14% of Douglas Bauer's holding. Douglas Bauer was the only individual insider to sell shares in the last twelve months.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Tri Pointe Homes
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Tri Pointe Homes
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Tri Pointe Homes insiders own 2.8% of the company, worth about US$76m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Tri Pointe Homes Insider Transactions Indicate?
The fact that there have been no Tri Pointe Homes insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Tri Pointe Homes insiders. The modest level of insider ownership is, at least, some comfort. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Tri Pointe Homes has 1 warning sign and it would be unwise to ignore this.
Of course Tri Pointe Homes may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.